Full-year 2017 financial results on target excluding the effects of
the Tax Cuts and Jobs Act

Initiating 2018 earnings guidance of $2.10 to $2.25 per diluted
share

Filed 2019 General Rate Case with the Oregon Public Utility
Commission

PORTLAND, Ore.--(BUSINESS WIRE)--
Portland General Electric Company (NYSE: POR)today reported net
income based on generally accepted accounting principles (GAAP) of $187
million, or $2.10 per diluted share, for the year ended December 31,
2017. This compares with $193 million, or $2.16 per diluted share, for
the year ended December 31, 2016. After adjusting for the impacts of the
Tax Cuts and Jobs Act (TCJA), non-GAAP net income was $204 million, or
$2.29 per diluted share, for the year ended December 31, 2017.
GAAP-based net income was $42 million, or 48 cents per diluted share,
for the fourth quarter of 2017. This compares with $61 million, or 68
cents per diluted share, for the comparable period of 2016. After
adjusting for the impacts of the TCJA, non-GAAP net income was $59
million, or 67 cents per diluted share, for the fourth quarter of 2017.
Looking forward, the company is initiating full-year 2018 earnings
guidance of $2.10 to $2.25 per diluted share.

"I'm very proud of our employees' accomplishments in delivering
outstanding service to our growing customer base and in collaborating
with our stakeholders and customers on our Integrated Resource Plan,"
said Maria Pope, president and CEO. "We are focused on meeting customer
expectations for safe, reliable, affordable, clean and secure energy."

2017 earnings compared to 2016 earnings

Before reflecting the impact of the TCJA, annual earnings per diluted
share increased year-over-year. Favorable weather had a positive impact
on gross margin. This impact was partially offset by adjustments to net
deferred taxes as a result of the TCJA, increased service restoration
expenses resulting from unusually high storm activity, and depreciation
expense and carrying costs related to previously reported incremental
construction costs for Carty. Additionally, annual earnings per diluted
share decreased due to lower production tax credit generation, higher
depreciation and amortization expenses related to additional
investments, and higher employee benefits expenses.

2018 earnings guidance

PGE is initiating full-year 2018 earnings guidance of $2.10 to $2.25 per
diluted share, which includes the impact of warmer than normal weather
in January 2018. Additional assumptions include the following:

A decline in retail deliveries between 0 and 1 percent, weather
adjusted;

Average hydro conditions;

Wind generation based on five years of historical levels or forecast
studies when historical data is not available;

Normal thermal plant operations;

Operating and maintenance costs between $575 and $595 million; and

Depreciation and amortization expense between $365 and $385 million.

The guidance provided assumes OPUC approval of the Company's intended
filing of a deferral application to recover the revenue requirement
associated with the customer information system replacement project
(Customer Touchpoints), which is expected to be placed in service in the
second quarter of 2018.

Company Updates

2019 General Rate Case

On February 15, 2018, PGE filed a general rate case with a 2019 test
year (2019 GRC), which would result in an overall customer price
increase of 4.8 percent, after adjusting for the effects of the TCJA,
effective in January of 2019.

"We are respectful of the impact price increases can have on our
customers, and we are committed to protecting affordability," said Pope.
"We're making necessary investments in our grid to maintain the safe and
reliable service customers expect, and we're upgrading our customer
service systems to provide better, more secure service."

PGE's grid investments include:

Replacing or upgrading electrical equipment that poses a reliability
risk

Equipping substations with technology that will shorten outages

Strengthening IT systems to protect against cyber and other potential
threats

Adding infrastructure to accommodate rapid growth in the region while
maintaining reliability for all customers

PGE expects the Commission to issue a final order in December 2018, with
new prices effective in January of 2019. The specific impact on
individual customers' bills will vary depending on usage and customer
class. If the OPUC approves PGE's request as submitted, typical
residential customers using a monthly average of 800 kilowatt-hours of
power would see their bill increase by about $6.50 per month.

2018 General Rate Case

On January 1, 2018, new customer prices went into effect pursuant to the
OPUC order issued in PGE's 2018 GRC. The OPUC authorized a $16 million
increase in annual revenues, representing an approximate 1 percent
overall increase in customer prices. In addition, the order approved a
capital structure of 50 percent debt and 50 percent equity, a return on
equity of 9.5 percent, a cost of capital of 7.35 percent, and a rate
base of $4.5 billion.

The general rate case filings, as well as copies of the orders, direct
testimony, exhibits, and stipulations are available on the OPUC website
at www.oregon.gov/puc.

Integrated Resource Planning

In November 2016, PGE filed an IRP (2016 IRP) with the Oregon Public
Utility Commission (OPUC). The 2016 IRP addressed acquisition of
additional resources to meet Renewable Portfolio Standard (RPS)
requirements and replace energy and capacity from Boardman, which will
cease coal-fired operations at the end of 2020. Further actions
identified through 2021 are expected to offset expiring power purchase
agreements and integrate variable energy resources, such as wind or
solar generation facilities.

In August 2017, the OPUC acknowledged PGE's 2016 IRP and the following
primary action plan items:

Meet additional capacity needs of 561 MW, of which 240 MW must be
dispatchable, in 2021;

Acquire a total of 135 MWa of cost-effective energy efficiency;

Acquire at least 77 MW (winter) and 69 MW (summer) demand response
through 2020 and 16 MW of dispatchable standby generation from
customers to help manage peak load conditions and other supply
contingencies;

In December 2017, PGE received acknowledgement from the OPUC of the
filed addendum to the 2016 IRP for the procurement of 100 MWa of RPS
compliant renewable resources.

Since issuing the 2016 IRP, PGE has identified a potential benchmark
wind resource that could have a nameplate capacity of up to 300 MW that
would meet the acknowledged need for renewable resources and qualify for
the federal Production Tax Credit. The Company continues to explore this
option and should due diligence be completed and agreements reached, the
potential benchmark resource would be submitted into the RFP and
considered along with other renewable resource proposals. The RFP
process will include oversight by an independent evaluator and review by
the OPUC.

In December 2017, the OPUC approved PGE's application for waiver of the
competitive bidding guidelines for the procurement of capacity. PGE has
now finalized bilateral power purchase agreements for a total capacity
of 300 MW.

Tax Reform

On December 22, 2017, the TCJA was enacted and signed into law with an
effective date of January 1, 2018. The reduction of the federal
corporate tax rate from 35% to 21% required the Company to remeasure its
existing deferred income tax balances as of December 31, 2017. As a
result of the Company's remeasurement, net deferred tax liabilities on
the Company's consolidated balance sheets were reduced by $340 million.

Of the remeasurement amount, $357 million has been deferred as a
regulatory liability and is expected to be refunded to customers over
time. The remaining remeasurement amount of $17 million represents a
reduction to net deferred tax assets related to other business items,
primarily comprised of deferred tax assets related to the Company's
non-qualified employee benefit plans. The Company has recorded a $17
million charge to the results of operations, reflected as an increase in
income tax expense in the Company's consolidated statements of income
for the period ended December 31, 2017.

As a result of the TCJA, PGE expects to incur lower income tax expense
in 2018 than what was estimated in setting customer prices in the
Company's 2018 GRC. In addition to the effects of the 2017 remeasurement
of deferred income taxes, PGE has proposed to defer and refund the 2018
expected net benefits of the TCJA under a deferral application filed
with the OPUC on December 29, 2017. If approved as requested, any refund
to customers of the net benefits associated with the TCJA in 2018 would
be subject to an earnings test and limited by the Company's previously
authorized regulated return on equity.

The impact of the TCJA may differ from these amounts due to, among other
things, changes in interpretations and assumptions the Company has made;
federal tax regulations, guidance or orders that may be issued by the
U.S. Department of the Treasury, Internal Revenue Service, and OPUC; and
actions the Company may take as a result of the TCJA.

2017 Annual Operating Results

Earnings Reconciliation of 2016 to 2017

($ in millions, except EPS)

Pre-Tax Income

Net Income*

Diluted EPS***

Reported 2016

$243

$193

$2.16

Revenue

Electric retail price change

(5)

(3)

(0.04)

Electric retail volume change

71

43

0.48

Change in decoupling deferral

10

6

0.07

Electric wholesale price and volume change

2

1

0.02

Other Items

8

5

0.06

Change in Revenue

86

52

0.59

Power Cost

Change in average power cost

38

23

0.25

Change purchased power and generation

(13)

(8)

(0.09)

Change in Power Costs

25

15

0.16

O&M

Generation, transmission, distribution

(23)

(14)

(0.15)

Administrative and general

(17)

(10)

(0.11)

Change in O&M

(40)

(24)

(0.26)

Other Items

Depreciation & amortization

(24)

(15)

(0.16)

AFDC Equity**

(9)

(9)

(0.10)

Other Items

(8)

(5)

(0.06)

Production Tax Credits

(7)

(0.08)

Tax Reform: Net Deferred Tax Asset Remeasurement

(17)

(0.19)

Adjustment for effective vs statutory tax rate

3

0.04

Change in Other Items

(41)

(50)

(0.55)

Reported 2017

$273

$187

$2.10

Non-GAAP Earnings Reconciliation for the three and twelve months
ended December 31, 2017

Non-GAAP adjusted earnings for the three months ended December
31, 2017

$59

$0.67

* After tax adjustments based on PGE's statutory tax rate of 39.5%

** Statutory tax rate does not apply to AFDC equity

*** Some values may not foot due to rounding

Revenues increased $86 million, or 4.5%, in 2017 compared with
2016 as a result of the items discussed below.

Total retail revenues increased $77 million, or 4.3%, in 2017
compared with 2016, primarily due to the net effect of:

A $71 million increase due to a 3.9% increase in retail energy
deliveries consisting of a 7.2% increase in residential deliveries, a
2.8% increase in industrial deliveries, and a 1.3% increase in
commercial deliveries. Considerably cooler temperatures in the first
half of 2017 than experienced in 2016 combined with warmer
temperatures in the summer cooling season in 2017, both drove
deliveries higher in 2017 than in 2016.

A $10 million increase resulting from the Decoupling mechanism, as an
estimated $13 million collection was recorded in 2017; and

A $5 million increase, directly offset in Depreciation and
amortization expense, related to the accelerated cost recovery of
Colstrip, partially offset by

A $5 million reduction as a result of overall price changes, which
includes a $55 million reduction in revenues attributable to lower
NVPC, as filed in the 2017 AUT; and

A $3 million decrease due to higher customer credits related to the
USDOE settlement in connection with operation of the ISFSI at the
former Trojan nuclear power plant site. Such credits are directly
offset in Depreciation and amortization expense.

Total heating degree-days in 2017 were above the 15-year average and
considerably greater than total heating degree-days in 2016. Total
cooling degree-days in 2017 exceeded the 15-year average by 49% and were
considerably higher than 2016. The following table presents the number
of heating and cooling degree-days in 2017 and 2016, along with the
15-year averages, reflecting that weather had a considerable influence
on comparative energy deliveries:

Heating Degree-Days

Cooling Degree-Days

2017

2016

15-YearAverage

2017

2016

15-YearAverage

1st quarter

2,171

1,585

1,867

—

—

—

2nd quarter

686

403

689

129

154

70

3rd quarter

78

78

78

571

394

399

4th quarter

1,623

1,486

1,599

—

—

2

Total

4,558

3,552

4,233

700

548

471

Increase (decrease) from the 15-year average

8

%

(16

)%

49

%

16

%

On a weather-adjusted basis, total retail energy deliveries in 2017 were
0.6% below 2016 levels. PGE projects that retail energy deliveries for
2018 will be nearly comparable to slightly lower than 2017
weather-adjusted levels, reflecting the closure of a large paper
customer in late 2017 as well as continued energy efficiency and
conservation efforts.

Wholesale revenues result from sales of electricity to utilities
and power marketers made in the Company's efforts to secure reasonably
priced power for its retail customers, manage risk, and administer its
current long-term wholesale contracts. Such sales can vary significantly
from year to year as a result of economic conditions, power and fuel
prices, hydro and wind availability, and customer demand.

In 2017, the $2 million, or 2%, increase in wholesale revenues from 2016
consisted of a $7 million increase that resulted as a 7% increase in
average prices was received when the Company sold power into the
wholesale market, partially offset by a $5 million decrease related to
5% less wholesale sales volume.

Other operating revenues increased $7 million, or 19%, in 2017
from 2016, as the sale of excess natural gas not used to fuel the
Company's generating facilities accounted for the majority of the
increase.

Actual NVPC, which consists of Purchased power and fuel expense
net of Wholesale revenues, decreased $27 million in 2017 compared with
2016. The decrease attributable to changes in Purchased power and fuel
expense was the result of a6% decline in the average variable
power cost per MWh, offset slightly by a 2% increase in total system
load. The decrease in actual NVPC was also driven by a 7% increase in
the average price per MWh of wholesale power sales, offset slightly by a
5% decrease in the volume of wholesale energy deliveries as a greater
portion of its system load was used to meet retail load requirements,
largely due to the effects of weather.

For 2017, actual NVPC, as calculated for regulatory purposes under the
PCAM, was $15 million above the 2017 baseline NVPC. In 2016, NVPC was
$10 million below the anticipated baseline.

Generation, transmission, and distributionexpense
increased $23 million, or 8%, in 2017 compared with 2016. The increase
was driven by the combination of $10 million in higher costs due to the
addition of Carty, $8 million higher service restoration and storm
costs, $3 million higher plant maintenance expenses, and $2 million
higher information technology expenses.

Administrative and otherexpense increased $17 million, or7%, in 2017 compared with 2016, primarily due to $12 million higher
overall labor and employee benefit expenses and $3 million higher legal
costs attributable to Carty.

Depreciation and amortizationexpense in 2017 increased
$24 million, or 7%, compared with 2016. The increase was primarily
driven by $26 million higher expense resulting from capital additions,
offset by a $3 million reduction in expense due to higher amortization
credits in 2017 of the regulatory liability for the ISFSI spent fuel
settlement. The overall impact resulting from the amortization of the
regulatory assets and liabilities is directly offset by corresponding
reductions in retail revenues.

Taxes other than income taxesexpense increased $4
million, or 3%, in 2017 compared with 2016, driven by $2 million higher
Oregon property taxes and $2 million higher payroll taxes.

Interest expense increased $8 million, or 7%, in 2017 compared
with 2016 due to a $4 million decrease in the credits for the allowance
for borrowed funds used during construction (primarily due to the Carty
plant being placed in service in 2016) and increased expense of $3
million resulting from a 5% increase in the average balance of debt
outstanding.

Other income, net was $17 million in 2017 compared to $22 million
in 2016, with the decrease primarily due to lower allowance for equity
funds used during construction, which resulted from Carty being placed
in service during 2016.

Income tax expense increased $36 million, or 72%, in 2017
compared to 2016. The change relates to a $13 million increase due to
higher pre-tax income and $7 million due to lower production tax
credits. Additionally, income tax expense increased $17 million due to
the remeasurement of deferred taxes pursuant to the change in corporate
tax rates in the TCJA.

Fourth Quarter 2017 earnings call and web cast — Feb. 16, 2018

PGE will host a conference call with financial analysts and investors on
Friday, Feb. 16, 2018, at 11 a.m. ET. The conference call will be web
cast live on the PGE website at PortlandGeneral.com.
A replay of the call will be available beginning at 2 p.m. ET on Friday,
Feb. 16, 2018 through Friday, Feb. 23, 2018.

Maria Pope, president and CEO; Jim Lobdell, senior vice president of
finance, CFO, and treasurer; and Chris Liddle, manager, investor
relations and treasury, will participate in the call. Management will
respond to questions following formal comments.

The attached unaudited consolidated statements of income, condensed
consolidated balance sheets, and condensed consolidated statements of
cash flows, as well as the supplemental operating statistics, are an
integral part of this earnings release.

About Portland General Electric Company

Portland General Electric Company is a vertically integrated electric
utility that serves approximately 875,000 residential, commercial and
industrial customers in the Portland/Salem metropolitan area of Oregon.
The company's headquarters are located at 121 S.W. Salmon Street,
Portland, Oregon 97204. Visit PGE's website at PortlandGeneral.com.

Safe Harbor Statement

Statements in this news release that relate to future plans, objectives,
expectations, performance, events and the like may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Forward-looking statements include statements
regarding earnings guidance; statements regarding future load, hydro
conditions, wind conditions and operating and maintenance costs;
statements concerning implementation of the company's integrated
resource plan; statements concerning future compliance with regulations
limiting emissions from generation facilities and the costs to achieve
such compliance; as well as other statements containing words such as
"anticipates," "believes," "intends," "estimates," "promises,"
"expects," "should," "conditioned upon," and similar expressions.
Investors are cautioned that any such forward-looking statements are
subject to risks and uncertainties, including reductions in demand for
electricity and the sale of excess energy during periods of low
wholesale market prices; operational risks relating to the company's
generation facilities, including hydro conditions, wind conditions,
disruption of fuel supply, and unscheduled plant outages, which may
result in unanticipated operating, maintenance and repair costs, as well
as replacement power costs; the costs of compliance with environmental
laws and regulations, including those that govern emissions from thermal
power plants; changes in weather, hydroelectric and energy markets
conditions, which could affect the availability and cost of purchased
power and fuel; changes in capital market conditions, which could affect
the availability and cost of capital and result in delay or cancellation
of capital projects; failure to complete capital projects on schedule or
within budget, or the abandonment of capital projects which could result
in the company's inability to recover project costs; the outcome of
various legal and regulatory proceedings; and general economic and
financial market conditions. As a result, actual results may differ
materially from those projected in the forward-looking statements. All
forward-looking statements included in this news release are based on
information available to the company on the date hereof and such
statements speak only as of the date hereof. The company assumes no
obligation to update any such forward-looking statement. Prospective
investors should also review the risks and uncertainties listed in the
company's most recent annual report on form 10-K and the company's
reports on forms 8-K and 10-Q filed with the United States Securities
and Exchange Commission, including management's discussion and analysis
of financial condition and results of operations and the risks described
therein from time to time.